Johnson Supply Company had sales of $1,000,000,Cost of goods sold was $600,000 and operating expenses were $340,000.The beginning cash balance was $400,000 and the ending cash balance was $220,000.Net cash flows from operating activities were $960,000.What is the company's gross profit ratio?

Question

Quizplus · Accepted Answer

Gross Profit Ratio = (Sales - Cost of Goods Sold) / Sales
= (1,000,000 - 600,000) / 1,000,000
= 0.4 or 40%

Johnson Supply Company Had Sales of $1,000,000,Cost of Goods Sold